Thanks for your suggestions. I get a 1042-S for tax-exemption of upto $8000 due to the existing tax-treaty with my country (income code 20). This is the first time I am filing as a tax resident. So I tried to follow your guidelines, I added a miscellaneous income of $8,000 as '1042-S wages' and also to balance that out I added another miscellaneous income of -$8,000 as 'tax treaty exemption'. However, doing these makes the total miscellaneous income as $0 and it does not show up in the 1040 form (Line 7a shows blank, which I guess should be usual, because technically the net income is $0 in this regard). Am I doing anything wrong? Please advise.